Top 10 Things to Know When Buying a Floating Home
Kappas Marina, Sausalito
Ah, the good life. Surrounded by sparkling water, views of the bay, interesting architecture, eclectic neighbors… nothing cookie-cutter about it. Have you ever wondered what it would be like? It turns out that it’s all that and more. Sausalito’s floating homes have a rich maritime history and are not only a home, but a way of life for the tight-knit community who lives there. If you think kayaking over on a sunny afternoon to take in a spontaneous rooftop music performance might be in your future, here are a few important things to know when buying a floating home.
The difference between a floating home and a houseboat is that a houseboat has a motor and a floating home does not. Floating homes have hulls made of concrete, wood or fiberglass. This means they can move up and down with the tide, and sit in the mud if need be, but they cannot move on their own and must remain firmly anchored and connected to services at a marina.
Inspections are important! Knowing the condition of the hull, mooring lines and dock connections (power, sewer, water) is essential. When setting your inspection contingency timeline, you might have to consult the tide charts to make sure that there will be a day when the tide is high enough for a diver to swim underneath your new home and check out the hull.
Slip fees and marina services can vary, though typically they include dock maintenance, parking, garbage service, and water. Find out what your fees include and what things will be your responsibility.
Purchasing a floating home gives you title to the home itself, and a right to lease the slip where it is moored. Even though you have a right to the lease, you still have to be accepted into the marina. Submit your application early!
A floating home is considered “real property” for the purposes of county property taxes. You receive an annual bill which is due twice a year, in December and April, just like regular residential property. However, since you are only taxed on the value of the home and not on the land or location, property taxes are considerably lower than the typical 1.25% of the purchase price we plan for with a regular purchase.
Just a few banks will loan on a floating home. Make sure you are pre-approved with one of these before making an offer to purchase.
There are only two types of insurance available on floating homes. Get bids early to see which type you can get, and the annual cost. Make sure your lender is aware of your annual insurance costs and the type of insurance available.
In order to move into your floating home, you must have a new Occupancy Permit issued by the Marin County Office of Community Development. To apply, you must fill out an application, pay a fee, have a property inspection by a county representative and complete any required repairs. Clarify if this is a buyer or a seller responsibility.
Important: don’t flush the toilet when the power is out! The bilge pump won’t work!
Your new neighbors are your very best source of information!
